REG - Scotgold Resources - Offtake advance & commencement long hole stoping

Scotgold ResourcesAnnouncement

05/04/2023 07:15

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RNS Number : 3907V  Scotgold Resources Ltd  05 April 2023

 

THIS ANNOUNCEMENT RELATES TO THE DISCLOSURE OF INFORMATION THAT QUALIFIED OR
MAY HAVE QUALIFIED AS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE
MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

 

5 April 2023

Scotgold Resources Limited ("Scotgold" or the "Company")

Offtake advance and commencement of long hole stoping at Cononish gold mine

 

Scotgold Resources Limited (AIM: SGZ), Scotland's first commercial gold
producer, is pleased to announce that, further to the previous announcements
made on 27 and 30 March, it has secured a US$500,000 advance to assist with
short-term working capital from its gold offtake partner which will be
received on 5 April 2023. The primary repayment mechanism will be executed by
offsetting US$100,000 against monthly deliveries from July to November 2023
inclusive. The interest rate being charged is SOFR + 4.5% per annum.

 

Additionally, Bridge Barn Limited ("Bridge Barn"), a company owned and
controlled by Mr Nathaniel le Roux, non-executive Director, and provider of
debt funding to the Company, has agreed to postpone all interest payments that
are currently due and payable by the Company to Bridge Barn up to and
including 1 December 2023. The total of the interest payments being deferred
is £450,000.

 

The deferral of interest payments constitutes a related party transaction
pursuant to AIM Rule 13 (the "Related Party Transaction"). The independent
Directors consider, having consulted with Shore Capital, the Company's
nominated adviser, that the terms of the Related Party Transaction are fair
and reasonable insofar as Shareholders are concerned.

 

Commencement of long hole stoping

 

In line with the update provided on 27 March, the Company is pleased to report
that it commenced long hole stope mining yesterday with the first blast in the
eastern section of the 430 West drive, with first ore being delivered to the
processing plant ROM pad for processing today to produce gold concentrate for
sale.  The first stope was completely drilled (70 holes, 950 meters of
drilling) over the last 10 days within the expected timeframe. This is a
reflection of the team's dedication to transition the mine into long hole
stope mining.

 

The Company is currently conducting long hole stoping along a 115m strike in
the eastern section of the 430 West drive. See figure 1 and 2 for current long
hole stoping mine plan.

 

Figure 1:  April 2023 stoping plan

 

 

 

 

 

 

 

 

 

 

 

Figure 2: April stope mining plan grades in 430 West eastern section (115m
stoping length) for April - July 2023 and thereafter.

 

 

 

 

Additionally, further gold doré was poured this week on site and is being
prepared for sale to jewellers to generate further revenue for the Company.

 

 

 

 

**ENDS**

 

 

 

For further information please visit www.scotgoldresources.com
(http://www.scotgoldresources.com) or contact the following:

 

 Scotgold Resources Limited    Shore Capital                         Celicourt Communications

 Chief Executive Officer       Nomad and Broker                      Financial PR

 Phil Day                      Toby Gibbs / John More / Tom Knibbs   Felicity Winkles/Ariana Fanning

 CFO

 Sean Duffy
 Via Celicourt Communications  Tel +44 (0) 20 7408 4090              Tel +44 (0) 208 434 2643

                                                                     Tel +44 (0) 774 8843 871

 

Notes

Scotgold Resources Ltd (AIM:SGZ), is Scotland's first commercial gold
producer. The Company poured first gold in November 2020 at its Cononish Gold
and Silver Mine ('Cononish) in Tyndrum, Scotland and is developing it into a
planned +23,500-ounce gold mine per annum. Cononish is a high-grade
underground mining operation with a central processing plant producing gold
concentrate for off-take and gold doré for the Scottish Jewellery industry.
 The mine has anticipated forecast operating costs of c.£610 per ounce in
Q4 2023, which will place Cononish in the lowest quartile of gold mining
operations globally.

It is Scotgold's vision to build a mid-tier gold mining company in Scotland
with multiple operations in the country that enhance the local environment
and economy in ways that have an enduring positive impact.

 

 

 

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